New Zealand Dollar Forecast: NZD/USD Surges on Red Hot Q2 CPI Print
2021-07-15 23:00:00
Thomas Westwater,
Analyst
New Zealand Dollar, NZD/USD, Inflation, Bond Yields - Talking Points
New Zealand Dollar sees inflows as Q2 inflation beats estimates
Asia-Pacific equity markets on track to finish higher on the week
NZD/USD pings 26-day EMA on move higher, will it overcome?
Friday’s Asia-Pacific Outlook
Asia-Pacific markets have seen a mixed week of trading, with major equity indexes across the region seeing modest gains, while most currencies fell against a stronger US Dollar. Wall Street stocks closed mostly lower, with the small-cap Russell 2000 index seeing a sharp 3.93% decline on the week. Falling Treasury yields have worked against cyclical trades.
New Zealand Dollar Forecast: NZD/USD Shoots Higher on Hawkish RBNZ, LSAP Termination
2021-07-14 02:30:00
Thomas Westwater,
Analyst
Reserve Bank of New Zealand, NZD/USD, Monetary Policy, LSAP – Talking Points
RBNZ holds Overnight Cash Rate steady at 0.25%, as expected
Large Scale Asset Purchases (LSAP) to be halted this month
NZD/USD climbs over technical barriers as price climbs over 1%
The Reserve Bank of New Zealand (RBNZ) held its Overnight Cash Rate (OCR) steady at 0.25 percent, as widely expected. However, the central bank moved to halt its Large Scale Asset Purchases (LSAP) by July 23. The end of its quantitative easing program marks a major turning point in reducing stimulus to the economy.
Article content
“The RBNZ has absolutely done enough hand-waving today to tick the ‘market-prep’ box for an August hike, with CPI and labor market data set to do the rest,” said Sharon Zollner, Chief Economist at ANZ Bank.
The move comes after U.S. inflation data rose by the most in 13 years in June, adding to uncertainty about whether such inflationary pressures are transitory and pushing up the U.S. dollar on bets of faster monetary policy tightening.
The New Zealand dollar rose 1.1% after the announcement to $0.7017. Yields on two-year bonds surged 9 basis points to its high for this year at 1.668%.
4 Min Read
WELLINGTON (Reuters) -New Zealand’s central bank on Wednesday announced a halt to its pandemic-induced quantitative easing programme, sending the Kiwi dollar soaring as markets bet that a rate hike was now imminent this year.
FILE PHOTO: Pedestrians walk near the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. REUTERS/David Gray
The Reserve Bank of New Zealand (RBNZ) kept its official cash rate at 0.25% but cut short a NZ$100 billion ($70 billion) bond buying programme, prompting local banks to bring forward calls for a rate rise to as early as August, which would put New Zealand at the forefront of countries to raise interest rates.
RBNZ holds OCR but surprises with end to QE bankingday.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bankingday.com Daily Mail and Mail on Sunday newspapers.